Q. Which fund manager’s investing approach is most consistent with fundamental management?
- Furlings
- Asgard
- Tokra
A is correct. Furlings combines a top-down and bottom-up approach, but in both cases, the allocation process is significantly determined according to the managers’ discretion and judgement. There is a strong emphasis on understanding financial reporting, and the sector managers focus on a relatively small number for firms. They also extend their analysis to other areas associated with fundamental management, such as valuation, competitive advantages, and governance. Finally, Furlings’s top-down process depends largely on the views and experience of its head manager.
